Essential Utilities Reports Financial Results for Full Year 2025

Core Insights - Essential Utilities reported a net income of $616.4 million or $2.20 per share for the full year 2025, an increase from $595.3 million and $2.17 per share in 2024, driven by higher rates and gas volumes [1] - The company invested a record $1.4 billion in infrastructure during 2025, focusing on improving regulated water and natural gas systems [1] - Shareholders approved the merger with American Water, positioning the company for future growth [1] Financial Performance - Full year 2025 revenues were $2,474.6 million, an 18.6% increase from $2,086.1 million in 2024, primarily due to regulatory recoveries and increased gas costs [1] - Operations and maintenance expenses rose to $639.6 million in 2025 from $587.3 million in 2024 [1] - For the fourth quarter of 2025, net income was $132.7 million or $0.47 per share, compared to $184.8 million and $0.67 per share in the same period of 2024 [1] Segment Performance - The regulated water segment generated revenues of $1,326.6 million in 2025, an 8.6% increase from $1,221.9 million in 2024, driven by rate increases [1] - The regulated natural gas segment reported revenues of $1,117.9 million in 2025, a 32.6% increase from $843.0 million in 2024, attributed to higher rates and gas volumes [1] Dividend and Financing - The board declared a quarterly cash dividend of $0.3426 per share, payable on March 2, 2026, and June 1, 2026, continuing a history of over 80 years of consecutive dividends [1] - As of December 31, 2025, the company had a weighted average cost of fixed-rate long-term debt of 4.10% and $667.5 million available on credit lines [1] Growth Strategy - Essential completed three acquisitions in 2025, adding over 12,700 new customers, and has signed agreements for additional acquisitions expected to serve over 200,000 customers [1] - The company is pursuing a pipeline of potential acquisitions representing approximately 400,000 total customers [1] Merger Progress - The merger with American Water is on track for closing in the first quarter of 2027, with regulatory approvals being sought in all applicable states [1] - Shareholders voted overwhelmingly in favor of the merger-related proposals on February 10, 2026 [1] Future Guidance - The company anticipates regulated infrastructure investments of $1.7 billion in 2026 and expects long-term earnings per share growth of 5 to 7% from the adjusted 2024 earnings per share of $1.97 [1]